There are broadly two types of biotech investors - the Wile E. Coyote
types who see bargains everywhere and charge bravely after them and the
Roadrunner types that know better than to charge off a cliff and into
thin air. Watch an episode or two and you'll see how the two types fare
over time.
That bring me to Achillion Pharmaceuticals (ACHN)
and an opportunity that looks so good, I keep wondering if it's just a
false image painted on the mountainside. There have been some definite
ups and downs across the sector in the race to develop new drugs for
hepatitis C (HCV), but Achillion looks like the real deal. Success with
Study 007 could point to a revenue opportunity of over $1 billion, while
the recent addition of a nuc to the pipeline makes it a veritable
one-stop shop for the next generation of HCV therapies.
All told,
Achillion looks like it could easily be worth $16 today, with upside
well into the $20s with good data and an ever-present possibility of a
takeout. Investors need to ask themselves why this is seemingly the one
biotech with good data to not participate in the sometimes-crazy biotech
bull market of the last three years, but on balance this looks like a
very promising biotech with value-driving events coming later this year.
Please read the full article here:
Achillion May Be The Most Underrated Biotech Left
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